diff --git a/package.json b/package.json
index 31887629..4383db75 100644
--- a/package.json
+++ b/package.json
@@ -489,12 +489,12 @@
                 {
                     "command": "python-envs.addPythonProjectGivenResource",
                     "group": "inline",
-                    "when": "explorerViewletVisible && explorerResourceIsFolder && !python-envs:isExistingProject"
+                    "when": "explorerViewletVisible && explorerResourceIsFolder"
                 },
                 {
                     "command": "python-envs.addPythonProjectGivenResource",
                     "group": "inline",
-                    "when": "explorerViewletVisible && resourceExtname == .py && !python-envs:isExistingProject"
+                    "when": "explorerViewletVisible && resourceExtname == .py"
                 }
             ],
             "editor/title/run": [
diff --git a/src/extension.ts b/src/extension.ts
index c4d89ec8..22b2f658 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -189,14 +189,6 @@ export async function activate(context: ExtensionContext): Promise<PythonEnviron
     const projectManager: PythonProjectManager = new PythonProjectManagerImpl();
     context.subscriptions.push(projectManager);
 
-    // Helper function to check if a resource is an existing Python project
-    const isExistingProject = (uri: Uri | undefined): boolean => {
-        if (!uri) {
-            return false;
-        }
-        return projectManager.get(uri) !== undefined;
-    };
-
     const envVarManager: EnvVarManager = new PythonEnvVariableManager(projectManager);
     context.subscriptions.push(envVarManager);
 
@@ -323,11 +315,6 @@ export async function activate(context: ExtensionContext): Promise<PythonEnviron
             });
         }),
         commands.registerCommand('python-envs.addPythonProjectGivenResource', async (resource) => {
-            // Set context to show/hide menu item depending on whether the resource is already a Python project
-            if (resource instanceof Uri) {
-                commands.executeCommand('setContext', 'python-envs:isExistingProject', isExistingProject(resource));
-            }
-
             await addPythonProjectCommand(resource, projectManager, envManagers, projectCreators);
             const totalProjectCount = projectManager.getProjects().length + 1;
             sendTelemetryEvent(EventNames.ADD_PROJECT, undefined, {
diff --git a/src/features/creators/autoFindProjects.ts b/src/features/creators/autoFindProjects.ts
index cb1258e6..7d3987c9 100644
--- a/src/features/creators/autoFindProjects.ts
+++ b/src/features/creators/autoFindProjects.ts
@@ -83,9 +83,17 @@ export class AutoFindProjects implements PythonProjectCreator {
 
         if (filtered.length === 0) {
             // No new projects found that are not already in the project manager
-            traceInfo('All discovered projects are already registered in the project manager');
+            traceInfo(
+                `All selected resources are already registered in the project manager: ${files
+                    .map((uri) => uri.fsPath)
+                    .join(', ')}`,
+            );
             setImmediate(() => {
-                showWarningMessage('No new projects found');
+                if (files.length === 1) {
+                    showWarningMessage(`${files[0].fsPath} already exists as project.`);
+                } else {
+                    showWarningMessage('Selected resources already exist as projects.');
+                }
             });
             return;
         }
diff --git a/src/features/creators/existingProjects.ts b/src/features/creators/existingProjects.ts
index 1bb6ff0c..5c66d29b 100644
--- a/src/features/creators/existingProjects.ts
+++ b/src/features/creators/existingProjects.ts
@@ -56,9 +56,17 @@ export class ExistingProjects implements PythonProjectCreator {
 
         if (filtered.length === 0) {
             // No new projects found that are not already in the project manager
-            traceInfo('All discovered projects are already registered in the project manager');
+            const formattedProjectPaths =
+                existingAddUri === undefined ? 'None' : existingAddUri.map((uri) => uri.fsPath).join(', ');
+            traceInfo(
+                `All selected resources are already registered in the project manager. Resources selected: ${formattedProjectPaths}`,
+            );
             setImmediate(() => {
-                showWarningMessage('No new projects found');
+                if (existingAddUri && existingAddUri.length === 1) {
+                    showWarningMessage(`Selected resource already exists as project.`);
+                } else {
+                    showWarningMessage('Selected resources already exist as projects.');
+                }
             });
             return;
         }